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2.0

Treasury Department affirms that refundable income-tax credits are subject to PRWORA

  1. Original Date Announced

    November 19, 2025

    Pursuant to Executive Order 14218, the Treasury Department's General Counsel issued a memorandum affirming a 2020 decision holding that refunded portions of refundable income-tax credits, as a class, were benefits to taxpayers within the meaning of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). The 2020 opinion had also held that the Earned Income Tax Credit, Additional Child Tax Credit, and American Opportunity Tax Credit are public benefits under PRWORA. The memo adds the Premium Tax Credit and Saver's Match credit to the list of credits many noncitizens may be ineligible for under PRWORA and suggests that the same may be true of other refundable individual-income-tax credits not specifically listed.

    Trump 2.0 [ID #2327]

    2025.11.19 Department of the Treasury General Counsel Memo - Status of the Refundable Portion of Certain Tax Credits as Federal Public Benefits

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